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But it said Latin America was the new region to watch, with 'promising signs for catch-up growth'.

Eastern European countries lost out because they were marked down for their exposure to the eurozone crisis. The ones that look most likely to overcome this obstacle to growth are Turkey (19) and Poland (29).

Topping the table: Top 30 of Maplecroft growth market index

No advanced Western countries made the index - they were penalised for lack of population growth and limited future productivity gains.

Surprises, non-surprises and the ones to watch

The most unexpected inclusions in the top 30 were Tanzania (12), Uzbekistan (20), Iraq (22) and Uganda (30), says Said Hirsh, associate director of Maplecroft.

They performed well due to projections of future population growth and potential gains from reforms, he explains.

China (1), India (2) and Indonesia (3) unsurprisingly came out on top, according to Hirsh.

This is mainly due to the sheer scale of their economies - he points out that a small economy, even if it is growing at 20 per cent a year, is still not of huge interest to investors.

Iraq and Myanmar (63) are identified as offering high potential in the future if reforms are implemented.

Iraq is politically unstable and dependent on commodities, while Myanmar suffers from poor infrastructure and low levels of health and education. But they both have significant scope to change their fortunes as they start from a low base and have favourable demographic profiles.

What about Russia?

Russia is a member of the 'BRIC' club of fast-growing developing nations along with China, Brazil and India - but it is only eleventh in Maplecroft's index of most promising investment destinations.

Hirsh puts this down to long-term challenges to the economy, including a falling working-age population, a poor regulatory framework, corruption and a heavy reliance on commodity exports.

He says: 'In Russia's case population growth is almost flat and it's not projected to have population growth rates similar to any of the other emerging markets.

'The other side of it is it's still in a very poor position on regulatory reform and corruption, which harm the business environment.'

Hirsh also notes Russia's dependence on commodity exports. Some countries are able to successfully manage this but others will mismanage revenues, particularly those lacking a strong regulatory framework, failing to save for future generations and neglecting their manufacturing sectors.

But Hirsh adds that Russia could well be on the move up the rankings if it brings in reforms.

Lagging behind: Russia could improve its ranking if it brings in reforms

WHAT YARDSTICKS WERE USED TO COMPILE GROWTH INDEX?

Growth performance - economic
performance, size of economy, current income and outlook, investment
profile, foreign investment and dependency on commodities.